VANCOUVER, BC, Feb. 16,
2023 /PRNewswire/ - New Pacific Metals Corp. ("New
Pacific" or the "Company") (TSX: NUAG) (NYSE American: NEWP) is
pleased to announce filing of an independent Preliminary Economic
Assessment ("PEA") technical report for its Silver Sand project
located in Potosi, Bolivia, with
an effective date of November 30,
2022 (the "PEA Technical Report").
The PEA Technical Report was prepared in accordance with the
Canadian Securities Administrators' National Instrument 43-101 –
Standards of Disclosure for Mineral Projects ("NI
43-101").
The Qualified Persons for the PEA Technical Report are Mr.
Wayne Rogers P.Eng and Mr.
Mo Molavi P.Eng both Principal
Mining Engineers with AMC Mining Consultants (Canada) Ltd., Mr. Morton Shannon, P.Geo, General Manager &
Principal Geologist with AMC Mining Consultants (Canada) Ltd., Mr. Andy
Holloway P.Eng, Process Director with Halyard Inc., and Mr.
Leon Botham P.Eng., Principal
Engineer with NewFields Canada Mining & Environment ULC. This
is in addition to Ms. Dinara Nussipakynova, P.Geo., Principal
Geologist with AMC Consultants (Canada) Ltd. who estimated the Mineral
Resources. All QPs have reviewed this news release and approved its
dissemination.
Alex Zhang, P.Geo., Vice
President of Exploration, who is the designated QP for the Company
has also reviewed and approved this news release.
A copy of the PEA Technical Report is available under the
Company's profile on SEDAR at www.sedar.com, on Edgar at
www.sec.gov, and on the Company's website at
www.newpacificmetals.com.
ABOUT NEW PACIFIC
New Pacific is a Canadian exploration and development company
with precious metal projects in Bolivia. The Company's flagship Project,
the Silver Sand Silver Project, has released its inaugural
preliminary economic assessment (the "PEA") results in January
2023. The PEA study shows a post-tax NPV (5% discount) of
US$726 million with an IRR of 39%,
underpinned by a total silver production of 171 million ounces over
14 years of mine life. At the recently discovered Carangas
Silver-Gold Project, a resource drilling program of more than
50,000 meters was completed in 2022. The third project, the
Silverstrike Silver-Gold Project, had a 6,000 metre discovery drill
program in June 2022.
FOR FURTHER INFORMATION
Andrew Williams, President
New Pacific Metals Corp.
Phone: (604) 633–1368 Ext. 236
U.S. & Canada toll-free:
1-877-631-0593
E-mail: invest@newpacificmetals.com
For additional information and to receive company news by e-mail,
please register using New Pacific's website
at www.newpacificmetals.com.
CAUTIONARY NOTE REGARDING RESULTS OF PRELIMINARY ECONOMIC
ASSESSMENT
The PEA study results of Silver Sand Project are preliminary
in nature and are intended to provide an initial assessment of the
project's economic potential and development options. The PEA mine
schedule and economic assessment includes numerous assumptions and
is based on both Indicated and Inferred mineral resources. Inferred
resources are considered too speculative geologically to have the
economic considerations applied to them that would enable them to
be categorized as mineral reserves, and there is no certainty that
the project economic assessments described herein will be achieved
or that the PEA results will be realized. The estimate of mineral
resources may be materially affected by geology, environmental,
permitting, legal, title, socio-political, marketing or other
relevant issues. Mineral Resources are not Mineral Reserves and do
not have demonstrated economic viability. Additional exploration
will be required to potentially upgrade the classification of the
Inferred Mineral Resources to be considered in future advanced
studies. AMC Mining Consultants (Canada) Ltd. (mineral resource, mining,
infrastructure and financial analysis) was contracted to conduct
the PEA in cooperation with Halyard Inc. (metallurgy and
processing), and NewFields Canada Mining & Environment ULC
(tailings, water and waste management). The Qualified Persons for
the PEA are Mr. Wayne Rogers P.Eng
and Mr. Mo Molavi P.Eng both
Principal Mining Engineers with AMC Mining Consultants
(Canada) Ltd, Mr. Andy Holloway P.Eng, Process Director with
Halyard Inc., and Mr. Leon Botham
P.Eng., Principal Engineer with NewFields Canada Mining
& Environment ULC. This is in addition to Ms. Dinara
Nussipakynova, P.Geo., Principal Geologist with AMC Consultants
(Canada) Ltd. who estimated the
Mineral Resources. All QPs have reviewed the technical content of
the January 9, 2023, news release for
the Silver Sand deposit and have approved its dissemination. The
Silver Sand PEA is based on the updated Mineral Resource Estimate
which was reported on November 28,
2022. The effective date of the 2022 Mineral Resource
Estimate for Silver Sand is 31 October
2022. The cut-off applied for reporting the pit-constrained
Mineral Resources is 30 g/t silver. Assumptions made to derive a
cut-off grade included mining costs, processing costs and
recoveries and were obtained from comparable industry situations.
The model is depleted for historical mining activities. Mineral
Resources are constrained by optimized pit shells at a silver price
of US$22.50 per ounce, silver
metallurgical recovery of 91%, silver payability of 99%, open pit
mining cost of US$2.6/t, processing
cost of US$16/t, G&A cost of
US$2/t, and slope angle of 44-47
degrees. Key assumptions used for pit optimization for the PEA
mining pit include silver price of US$22.50 per ounce, silver metallurgical recovery
of 91%, silver payability of 99%, open pit mining cost of
US$2.6/t, incremental mining cost of
US$0.04/t (per 10 m bench), processing cost of US$16/t, tailing storage facility operating cost
of US$0.7/t, G&A cost of
US$2/t, royalty of 6.00%, mining
recovery of 92%, dilution of 8%, and cut-off grade of 30 g/t
silver.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain of the statements and information in this news
release constitute "forward-looking statements" within the meaning
of the United States Private Securities Litigation Reform Act of
1995 and "forward-looking information" within the meaning of
applicable Canadian provincial securities laws. Any statements or
information that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions, or future events or performance (often, but not
always, using words or phrases such as "expects", "is expected",
"anticipates", "believes", "plans", "projects", "estimates",
"assumes", "intends", "strategies", "targets", "goals",
"forecasts", "objectives", "budgets", "schedules", "potential" or
variations thereof or stating that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved, or the negative of any of these terms and similar
expressions) are not statements of historical fact and may be
forward-looking statements or information. Such statements include,
but are not limited to: statements regarding anticipated inclusion
of certain drill hole results in the Project's inaugural mineral
resource estimate and the anticipated timing for the release of
such mineral resource estimate.
Forward-looking
statements or information are subject to a variety of known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ from those reflected in the
forward-looking statements or information, including, without
limitation, risks relating to: global economic and social impact of
COVID-19; fluctuating equity prices, bond prices, commodity prices;
calculation of resources, reserves and mineralization, general
economic conditions, foreign exchange risks, interest rate risk,
foreign investment risk; loss of key personnel; conflicts of
interest; dependence on management, uncertainties relating to the
availability and costs of financing needed in the future,
environmental risks, operations and political conditions, the
regulatory environment in Bolivia
and Canada; risks associated with
community relations and corporate social responsibility, and other
factors described under the heading "Risk Factors" in the Company's
Annual Information Form for the year ended June 30, 2022 and its other public
filings.
Forward-looking statements or information are
subject to a variety of known and unknown risks, uncertainties and
other factors that could cause actual events or results to differ
from those reflected in the forward-looking statements or
information, including, without limitation, risks relating to:
global economic and social impact of COVID-19; fluctuating equity
prices, bond prices, commodity prices; calculation of resources,
reserves and mineralization, general economic conditions, foreign
exchange risks, interest rate risk, foreign investment risk; loss
of key personnel; conflicts of interest; dependence on management,
uncertainties relating to the availability and costs of financing
needed in the future, environmental risks, operations and political
conditions, the regulatory environment in Bolivia and Canada; risks associated with community
relations and corporate social responsibility, and other factors
described under the heading "Risk Factors" in the Company's Annual
Information Form for the year ended June 30,
2022 and its other public filings.
This list is
not exhaustive of the factors that may affect any of the Company's
forward-looking statements or information.
The
forward-looking statements are necessarily based on a number of
estimates, assumptions, beliefs, expectations and opinions of
management as of the date of this news release that, while
considered reasonable by management, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. These estimates, assumptions, beliefs, expectations
and options include, but are not limited to, those related to the
Company's ability to carry on current and future operations,
including: the duration and effects of COVID-19 on our operations
and workforce; development and exploration activities; the timing,
extent, duration and economic viability of such operations; the
accuracy and reliability of estimates, projections, forecasts,
studies and assessments; the Company's ability to meet or achieve
estimates, projections and forecasts; the stabilization of the
political climate in Bolivia; the
Company's ability to obtain and maintain social license at its
mineral properties; the availability and cost of inputs; the price
and market for outputs; foreign exchange rates; taxation levels;
the timely receipt of necessary approvals or permits, including the
ratification and approval of the Mining Production Contract with
COMIBOL by the Plurinational Legislative Assembly of Bolivia; the ability of the Company's Bolivian
partner to convert the exploration licenses at the Carangas Project
to AMC; the ability to meet current and future obligations; the
ability to obtain timely financing on reasonable terms when
required; the current and future social, economic and political
conditions; and other assumptions and factors generally associated
with the mining industry.
Although the forward-looking
statements contained in this news release are based upon what
management believes are reasonable assumptions, there can be no
assurance that actual results will be consistent with these
forward-looking statements. All forward-looking statements in this
news release are qualified by these cautionary statements.
Accordingly, readers should not place undue reliance on such
statements. Other than specifically required by applicable laws,
the Company is under no obligation and expressly disclaims any such
obligation to update or alter the forward-looking statements
whether as a result of new information, future events or otherwise
except as may be required by law. These forward-looking statements
are made as of the date of this news release.
CAUTIONARY NOTE TO US INVESTORS
This news release has been prepared in accordance with the
requirements of the securities laws in effect in Canada which differ from the requirements of
United States securities laws. The
technical and scientific information contained herein has been
prepared in accordance with NI 43-101, which differs from the
standards adopted by the U.S. Securities and Exchange Commission
(the "SEC"). Accordingly, the technical and scientific information
contained herein, including any estimates of mineral reserves and
mineral resources, may not be comparable to similar information
disclosed by U.S. companies subject to the disclosure requirements
of the SEC.
Additional information relating to the
Company, including the Company's Annual Information Form, can be
obtained under the Company's profile on SEDAR
at www.sedar.com, on EDGAR
at www.sec.gov, and on the Company's website
at www.newpacificmetals.com.
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SOURCE New Pacific Metals Corp.